IMPLEMENTING RULES AND REGULATIONS

GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997

(REPUBLIC ACT NO. 8291)

TABLE OF CONTENTS

RULE I DEFINITION OF TERMS 1 - 4

Section 1 Definition

RULE II MEMBERSHIP OF THE GSIS 4 - 15

Section 2 Compulsory Coverage
Section 3 Exclusion from Compulsory Coverage
Section 4 Policy Governing Membership Administration
Section 5 Effectivity of Membership
Section 6 Types of Compulsory Life Insurance
Section 7 Automatic Policy Loan
Section 8 Policy Lapsation
Section 9 Member’s Service Profile
Section 10 Other Policies Affecting Membership Administration

RULE III COLLECTION AND REMITTANCE OF CONTRIBUTIONS AND OTHER AMOUNTS 15 - 17

Section 11 Amount of Contribution
Section 12 Budgetary Appropriations to Cover Agencies’ Contributions
Section 13 Collection of Contributions
Section 14 Remittance of Contributions
Section 15 Penalties on Delayed Remittance
Section 16 Effects of Non-Remittance of Contributions and Other Amounts on the Eligibility to Benefits of
Members
Section 17 Reports on the Status of Members

RULE IV BENEFITS 17 - 33
Section 18 Compulsory Life Insurance Benefits Under Life Endowment Policy (LEP)
Section 19 Compulsory Life Insurance Benefits Under Enhanced Life Policy (ELP)
Section 20 Retirement Benefits
Section 21 Separation Benefits
Section 22 Unemployment Benefits
Section 23 Disability Benefits
Section 24 Survivorship Benefits
Section 25 Funeral Benefits
RULE V ADJUDICATION OF CLAIMS AND DISPUTES 33 - 40

Section 26 Committee on Claims

Section 27 Quasi-Judicial Functions of the GSIS

Section 28 Hearing Officer, Powers and Duties

Section 29 Clerk of the GSIS

Section 30 Prescription

Section 31 Construction

Section 32 Suppletory Application of Rules of Court

Section 33 General Principles in Hearing and Determination

of Cases

Section 34 Caption and Title

Section 35 Parties

Section 36 Who May File Petition

Section 37 Contents of the Petition

Section 38 Verified Pleadings

Section 39 Prohibited Pleadings and Motions

Section 40 Filing and Service of Pleadings

Section 41 Summons

Section 42 Responsive Pleading

Section 43 Effect of Failure to Answer

Section 44 Proceedings Before the Hearing Officer

RULE VI FUNDS OF THE GSIS 40 – 43

Section 45 Funds

Section 46 Deposits and Disbursements

Section 47 Investment of Funds

RULE VII ADMINISTRATION 43 - 49

Section 48 Implementing Body

Section 49 Powers and Functions of the GSIS

Section 50 The Board of Trustees; Its Composition; Tenure;

and Compensation

Section 51 Powers and Functions of the Board of Trustees

Section 52 Appointment, Qualifications and Compensation

of the President and General Manager

Section 53 Powers and Duties of the President and General

Manager

Section 54 Auditor

Section 55 Legal Counsel

Section 56 Powers of the Insurance Commission

RULE VIII PENAL PROVISIONS 49 - 51

Section 57 Who May File a Criminal Action

Section 58 Penalties Under Article 172 of the Revised

Penal Code

Section 59 Other Penalties

RULE IX GENERAL PROVISIONS 51 – 53

Section 60 Dispensation of Social Insurance Benefits

Section 61 Development and Disposition of Acquired

Assets

Section 62 Government Assistance to the GSIS

Section 63 Non-impairment of Benefits, Powers, Jurisdiction,

Rights, Privileges, Functions and Activities

Section 64 Exclusiveness of Benefits

Section 65 Appropriations

Section 66 Separability Clause

Section 67 Repealing Clause

Section 68 Effectivity of the Revised Implementing Rules

and Regulations
Pursuant to Section 53 of Section 1 of Republic Act No. 8291, otherwise known as the
Government Service Insurance System Act of 1997, the implementing rules and
regulations are hereby adopted and promulgated to carry out the provisions of the law.

RULE I

DEFINITION OF TERMS

Section 1. Unless the context otherwise indicates, the following terms shall mean:

1.1 ACCOUNT IN ARREARS – An account which remains unpaid after due

date.

1.2 ACCOUNT IN DEFAULT – An account in arrears which became due and

demandable and remain unpaid.

1.3 ACT – Refers to Republic Act No. 8291, otherwise known as the
Government Service Insurance System Act of 1997.

1.4 AMC – Refers to Average Monthly Compensation. This refers to the

average salary received by the member during the last 36 months of
creditable service preceding his separation, retirement, disability, or death,
or, if with less than 36 months of creditable service, the actual number of
months of the creditable service.

1.5 APL - Refers to Automatic Policy Loan or Automatic Premium Loan. This
is the amount that will be deducted from the Cash Value/Termination
Value of a life insurance policy to keep the policy in force.

1.6 BENEFIT – The amount that GSIS is obligated to pay the member upon
the occurrence of a covered contingency that is payable under the Act.

1.7 BILLING – The process of sending notices or statements to government

agencies, members, or borrowers to remind or demand payment for
accounts that are falling due or are past their due dates.

1.8 BOARD – The Board of Trustees of the GSIS.

1.9 CASH DIVIDEND - The sum of money paid to policyholders whose life
insurance policies have been in force for at least one year subject to
amount and conditions recommended by Actuary and approved by the
Board.
1.10 CASH PAYMENT – A benefit payable to a member upon separation,
disability or retirement, or to the beneficiaries upon the death of the
member, under conditions provided by law.

1.11 CASH VALUE – Accumulated amount earned based on premium payment

while the LEP is in force.

1.12 CLAIM – A request from the member or his beneficiaries for payment of
benefits that may be due as provided under this Act.

1.13 CLIP – Refers to Claims and Loans Interdependency Policy. This is a

mechanism which ensures the collection of unpaid accounts from the
proceeds of a loan or claim of a member or his beneficiaries.

1.14 COMPENSATION - The fixed monthly salary received by an employee

excluding allowances, per diems, bonuses, overtime pay, honoraria and
other emoluments not integrated into the fixed monthly salary.

1.15 CONTINGENCIES – Events such as separation from the service,

retirement, disability or death which are payable under this Act.

1.16 CONTRIBUTION – The amount payable to the GSIS by the member and
government agency or employer to which he belongs.

1.17 CSV – Refers to Cash Surrender Value, which is the amount to be paid to
the policyholder of Life Endowment Policy (LEP) or optional life insurance
policies when he is separated from the service before maturity date of the
policy or when a policyholder is considered a case of Permanent Total
Disability (PTD).

1.18 CURRENT DAILY COMPENSATION. — The actual daily compensation or

the fixed monthly compensation divided by twenty-two (22) days.

1.19 DEPENDENTS – The (a) legitimate spouse dependent for support on the
member or pensioner, (b) legitimate/legitimated legally adopted child,
including the illegitimate child, who is unmarried, not gainfully employed,
not over the age of majority, or is over the age of majority but incapacitated
and incapable of self-support due to a mental or physical defect acquired
prior to age of majority, and (c) the parents dependent upon the member
for support.

1.20 DISABILITY – Any loss or impairment of the normal functions of the

physical and/or mental faculties of a member, which reduces or eliminates
his capacity to continue with his current gainful occupation or engage in
any other gainful occupation resulting in the loss of income.
1.21 ELP – Refers to Enhanced Life Policy. This is a compulsory life insurance
coverage issued by GSIS after July 31, 2003.

1.22 FUNERAL BENEFIT – Benefit intended to help defray the expenses

incidental to the burial and funeral of the deceased member, pensioner or
retiree.

1.23 GAINFUL OCCUPATION – Any productive activity that provides income of

at least equal to the prevailing minimum compensation of government
employees.

1.24 GOVERNMENT AGENCY - Any government office whether national or

local, legislative bodies, government-owned and controlled corporations
(GOCC) with original charters, government financial institutions (GFIs),
constitutional commissions, judiciary, Armed Forces of the Philippines, the
Philippine National Police, Bureau of Jail Management and Penology
(BJMP) and Bureau of Fire Protection (BFP).

1.25 INVESTMENTS – Amounts of money or other resources measured in

terms of money placed on activities for the purpose of earning profits.

1.26 LEP- Refers to Life Endowment Policy. This is the life insurance policy
issued to regular members prior to August 1, 2003 or to special members
after the implementation of this Act.

1.27 MEMBER – A government employee receiving compensation while in the

service of a government agency by virtue of an appointment or election to
public office and irrespective of status of appointment.

1.28 ACTIVE MEMBER. — A member of GSIS, whether regular or special, who

is in the government service.
1.29 INACTIVE MEMBER. – A member who is separated from the service,
either by resignation, retirement, disability, dismissal, or retrenchment.

1.30 REGULAR MEMBERS – Those who, together with the government

agency to which they belong, are required to remit life and retirement
premium contributions as mandated under Section 5 of RA 8291.

1.31 SPECIAL MEMBERS – Those who, together with the government agency
to which they belong, are required to remit life insurance premiums only.

1.32 PENSION – A monthly specified cash amount that a qualified member will
receive upon retirement or when considered as a case of permanent total
disability.
1.33 PRESCRIPTION PERIOD – The allowable period within which to file a
claim for benefit or benefits.

1.34 RCS – Refers to Record of Creditable Service. The RCS includes service
periods with corresponding premium contributions and serves as basis for
computing benefits.

1.35 RE-EMPLOYMENT – Subsequent re-entry in government service after

separation from service.

1.36 REINSTATEMENT OF POLICY – The restoration of the effectivity of the

life insurance policy upon payment of the required premiums under terms
and conditions of the ELP.

1.37 TERMINATION VALUE – Accumulated amount earned based on premium

payment while the ELP is in force.

RULE II

MEMBERSHIP OF THE GSIS

Section 2. Compulsory Membership

2.1. All government personnel, whether elective or appointive, irrespective of status

of appointment, provided they are receiving fixed monthly compensation and
have not reached the mandatory retirement age of 65 years, are compulsorily
covered as members of the GSIS and shall be required to pay contributions.

2.2. However, employees who have reached the retirement age of 65 or more shall
also be covered, subject to the following rules:

An employee who is already beyond the mandatory retirement age of 65 shall

be compulsorily covered and be required to pay both the life and retirement
premiums under the following situations:

1. An elective official who at the time of election to public office is below

65 years of age and will be 65 years or more at the end of his term of
office, including the period/s of his re-election to public office
thereafter without interruption.

2. Appointive officials who, before reaching the mandatory age of 65,

are appointed to government position by the President of the
Republic of the Philippines and shall remain in government service at
age beyond 65.
2.3. Contractual employees including casuals and other employees with an
employee-government agency relationship are also compulsorily covered,
provided they are receiving fixed monthly compensation and rendering the
required number of working hours for the month.

2.4. Classes of Membership – Membership in the GSIS is classified either by type

or status of membership.

2.4.1 As to type of members, there are regular and special members:

a. Regular Members – are those employed by the government of the

Republic of the Philippines, national or local, legislative bodies,
government-owned and controlled corporations (GOCC) with
original charters, government financial institutions (GFIs), except
uniformed personnel of the Armed Forces of the Philippines, the
Philippine National Police, Bureau of Jail Management and
Penology (BJMP) and Bureau of Fire Protection (BFP), who are
required by law to remit regular monthly contributions to the GSIS.

b. Special Members – are constitutional commissioners, members of

the judiciary, including those with equivalent ranks, who are
required by law to remit regular monthly contributions for life
insurance policies to the GSIS in order to answer for their life
insurance benefits defined under RA 8291.

2.4.2. As to status of membership, there are active and inactive members.

a. Active member – refers to a member of the GSIS, whether regular

or special, who is still in the government service and together with
the government agency to which he belongs, is required to pay the
monthly contribution.

b. Inactive member – a member who is separated from the service

either by resignation, retirement, disability, dismissal from the
service, retrenchment or, who is deemed retired from the service
under this Act.

Section 3 Exclusion from Compulsory Coverage

3.1 The following employees are excluded from compulsory coverage:

3.1.1. Uniformed personnel of the Armed Forces of the Philippines (AFP),

Philippine National Police (PNP), Bureau of Fire Protection (BFP) and
Bureau of Jail Management and Penology (BJMP);
3.1.2. Barangay and Sanggunian Officials who are not receiving fixed monthly
compensation;

3.1.3. Contractual Employees who are not receiving fixed monthly

compensation; and

3.1.4. Employees who do not have monthly regular hours of work and are not
receiving fixed monthly compensation.

Section 4 Policy Governing Membership Administration

The basic policy governing membership administration shall be length of service with
corresponding paid premiums.

4.1 The basic principles under this policy are:

4.1.1 Membership in the GSIS carries with it the legal obligation to promptly
remit the required monthly premium contributions. Thus the extent of the
benefits to which a member is entitled will depend upon the level of
compliance in the remittance of his premium contributions.

4.1.2 Government agencies where the members are employed have the legal
obligation to remit on time the monthly premium contributions due from
members concerned, both for personal and government shares. In case of
delay, they have the legal obligation to pay interest as may be prescribed
by the Board but not less than two percent (2%) simple interest per month.

4.1.3 For purposes of computing the benefits under the social insurance laws
administered by the GSIS, a member’s period of service in government
will only be recognized by GSIS as creditable service if the monthly
compulsory premiums corresponding to said period have been paid and
remitted, including the interests if there are delays in their remittance.
4.1.4 In case of underpayment of the monthly premium contributions due, only
such portion of the period of service proportionately equivalent to the
amount actually received shall be recognized as creditable service for
purposes of computing the benefits under the administration of GSIS.

4.1.5 The amount of monthly contributions due from a member is based on his
fixed monthly compensation.

4.1.6 The compulsory life insurance coverage extended to the members is

dependent on the timely remittance of the premiums due for the coverage.
Thus, the said coverage may lapse for failure to remit the required
premiums.
Section 5 Effectivity of Membership

The effective date of membership shall be the date of the member’s assumption to duty
on his original appointment or election to public office.

Section 6 Types of Compulsory Life Insurance

The GSIS is administering two (2) types of compulsory life insurance programs for its
members. First is the life Insurance policy with an endowment plan or Life Endowment
Policy (LEP) as distinguished from the second program which is termed as Enhanced
Life Policy (ELP).

6.1 Life Endowment Policy (LEP) is an insurance policy issued to members prior to
August 1, 2003. It has the following features:

6.1.1 It provides coverage against death whether due to natural or accidental

causes, permanent total disability, and cash benefits upon maturity or
separation from the service.

6.1.2 The effective date of coverage is the date of appointment regardless of the
status thereof, or assumption to duty, whichever is later and applicable.

6.1.3 The type of insurance plans issued to members depends on the age
nearest the member’s birth date at the time of effectivity, as follows:

Age Bracket

Plan of Insurance

30 years and below

Endowment at 45

31 years to 40

Endowment at 55

41 years to 59

Endowment at 65

60 years and over

Ordinary Life

6.1.4 The amount of insurance is based on the plan of insurance, the age of the
member at the effectivity of the plan, and the fixed monthly pay of the
member. An insurance factor based on the age and type of insurance is
applied to the annual salary to get the amount of insurance.

6.1.5 After the first year of coverage, the plan earns cash value and increases
with the regular payment of premiums on the plan.

6.1.6 In case of non-payment of the premiums, an APL will be applied against

the cash value provided that the policy has enough cash value, less policy
loan, to cover the APL. Provided further, that such non-payment shall not
extend to more than 12 months. In the case non-payment extends to
more than 12 months, the policy shall be lapsed and the remaining cash
value shall be the seed fund of the reinstated policy.

6.1.7 Members Covered under LEP

The following members are covered under LEP:

a. Regular members whose policies were issued before August 1, 2003

and who have opted to continue with their endowment / ordinary life
plans.

b. Special members

6.2 Enhanced Life Policy (ELP) is a compulsory life insurance coverage issued by
GSIS to regular members after July 31, 2003.

6.2.1 Coverage

a. Regular members who entered the service after July 31, 2003.

b. Regular members whose LEP policies matured on or after July 31,

2003.

c. Regular members under LEP who opted/will opt to convert their

existing LEP into ELP.
d. Regular members whose LEP policy lapsed by reason of non-
payment of life insurance premiums but who, after July 31, 2003,
have started to remit the premiums due for compulsory life
insurance coverage.

6.2.2 The insurance coverage is a yearly cover automatically issued to a new

member of GSIS based on his fixed monthly compensation. While this
does not have an endowment policy, this provides a higher form of death
benefit for the family, and at the same time, it has termination value which
can be withdrawn upon separation or retirement.

6.2.3 Age and length of service will no longer be a factor in determining the
amount of insurance coverage.

6.2.4 ELP of newly appointed employee shall be effective for a period of 90

days from date of assumption to duty, even without receipt of the
corresponding life insurance premiums due and even if GSIS has not
received any formal notice of his assumption to duty, subject to the
following conditions:
a. The new employee is receiving fixed monthly compensation.

b. In case the employee dies within 90 days from the date of

assumption to duty, the corresponding death benefit or the
proceeds of the life insurance shall be paid to the legal heirs,
subject to presentation of proof that the employee was appointed to
the position and assumed office within the said period. Premiums
due the GSIS shall be deducted from the proceeds of the life
insurance benefit.

c. In case no payment of the monthly premium contributions for life

insurance is made after the 90-day term, the life insurance
coverage issued shall automatically lapse and the legal heirs of the
member shall not be entitled to life insurance benefits in case of his
death.

6.2.5 No supplemental policies will be issued in case of adjustment in the salary

of the policyholder.

6.2.6 ELP will earn termination value, which can be withdrawn upon separation
or retirement.

6.2.7 In case of non-payment of the premiums, an APL will be applied against

the termination value of the policy, provided that the said policy has
enough termination value, less policy loan, to cover the premiums due for
the life insurance cover. Provided further, that such non-payment shall not
be more than 12 months.

6.2.8 In case non-payment is more than 12 months, the policy shall be lapsed
and the remaining termination value shall be the seed fund of the
reinstated policy.
Section 7 Automatic Policy Loan (APL) - The APL is a feature of a GSIS life
insurance policy that keeps the policy in force in case of non payment of
premiums by taking out a loan amount against the unrestricted portion of
the policy’s accumulated Cash Value (CV) or Termination Value (TV).

7.1 The APL shall only be applied if the policy has:

7.1.1 An unpaid premium after the grace period; and

7.1.2 Earned sufficient CV or TV to cover the unpaid premiums or a fraction

thereof, and policy loan, including corresponding interest thereon.
7.2 In the case of LEP or ELP, if the premium contribution paid is not sufficient to
cover the life insurance premium for the month, after deducting the retirement
premium, APL equivalent to the amount of the unpaid premium, or a fraction
thereof, shall be applied.

7.3 The interest rate shall be the same as the interest rate for policy loan. The
interest charged on the APL of a policyholder shall be independent of the interest
charged on the agency for delayed remittances.

7.4 The formula for computing the APL Balance as of a given date shall be as
follows:

APL Balance (current month) = APL Balance (previous month) + Interest due
on APL Balance (previous month) + Unpaid Premium Due for the Current
Month (full or partial)

Section 8 Policy Lapsation

8.1 Basic Rules on Policy Lapsation. - A policy shall be considered lapsed when:

8.1.1 The combined outstanding balances of its APL and Policy Loan have
exceeded the Cash Value or Termination Value. The regular policy loan of
a lapsed policy and the APL, if any, shall be deemed paid by the
accumulated CV/TV of the policy; or

8.1.2 The policy has no payment for twelve (12) months, or the total unpaid
premiums is equal to twelve (12) months, even if there is still balance in
the cash or termination value of the policy. After the automatic lapse of a
compulsory life insurance policy, the following shall be done:

a. If the member is still in the service, the CV/TV balance shall be

used as seed fund of his new ELP policy or shall form part of the
termination value of his reinstated ELP, as the case may be.

b. If the member is already separated from the service, the CV/TV

balance shall be used to pay his other existing loan obligations
with the GSIS and any excess shall be paid to the policyholder,
subject to the filing of a claim, otherwise, the CV/TV balance will
become the seed fund of his new ELP, or added to the
termination value of his reinstated ELP, in case of re-entry in
government service.

c. The monthly premium billing for lapsed policies shall continue in

case the member is still in the service.
8.2. Basic rules on Policy Reinstatement and Conversion from LEP to ELP are as
follows:

8.2.1 Lapsed policy shall automatically be reinstated on the date the life
insurance premiums are paid and remitted to the GSIS for the account of
the member effective on the beginning of the due month covered by the
payment.

8.2.2 Member with lapsed LEP shall be issued an ELP upon receipt of first
premium under the new coverage, provided he is still in the service.

8.2.3 For members whose LEP has lapsed and were issued new ELP, all
unposted life insurance payments prior to policy lapse but posted after
policy lapse shall be added to the termination value of the new ELP.

8.2.4 After conversion from LEP policy to ELP policy, any excess payment, after
applying the payment to the current month and the preceding unpaid
months where the member was given a grace period, shall be added to
the TV of the ELP.

Section 9 Member’s Service Profile

For purposes of establishing data for every member, a Member’s Service Profile (MSP)
is created in the GSIS database.

The MSP basically contains the service profile of every member which includes among
others, the date of first entry in government service, the periods in government service,
the respective agencies and the position the member has served, the salaries received,
the Total Length of Service (TLS) and the Record of Creditable Service (RCS).

Updates are made on the basis of changes in personal data, salaries, promotion,
transfers, and separation of a member.

A member separated from the service by reason of resignation, retirement, disability,

dismissal from the service, retrenchment or in any manner of separation from the
government agency to which he is employed, shall continue to be a member although
classified under inactive status and his membership shall be maintained in the database
of GSIS. Whatever future benefits he is entitled to shall be payable to the member once
they become due.

Section 10 Other Policies Affecting Membership Administration

10.1. In the case of members whose premiums were remitted to GSIS but later found
to be ineligible for Compulsory Membership:
10.1.1 The policies of these members shall be terminated. All remitted
payments for both personal and government shares shall be applied to
the existing obligations of the member, if any, subject to the policies and
procedures on excess payments.

10.1.2 In cases where the member has no other personal obligation to the
GSIS, he shall be refunded the personal share for life and retirement,
without interest, reckoned from the date the member became ineligible
for compulsory membership. The heirs of the member shall no longer be
entitled to the benefit in case a contingency occurred prior to the
termination of the policy.

10.1.3 The government share for both life and retirement shall be applied to the
existing obligation of the agency.

10.2 On the Conversion / Reclassification of a Regular Member to Special Member

The compulsory life policy of a regular member who is converted/reclassified to

special member shall be terminated and provided a LEP coverage, and,
henceforth be considered as a special member.

10.2.1 The compulsory life policy of a regular member whose membership

classification has been converted to special member by virtue of his
appointment as a Judge, Justice or their equivalent, shall be terminated
upon separation from his old position. He shall be provided LEP coverage
upon assumption to duty to his new position.

10.2.2 All outstanding obligations of the reclassified member shall be collected

from the Cash Surrender Value (CSV) or Termination Value (TV) of his
terminated ELP policy. Payment of CSV or TV shall be subject to the filing
of a claim.
10.2.3 Any remaining TV of the ELP shall be subject to CLIP.

10.2.4 At the time of his termination as a regular member, he shall be entitled to

whatever benefits accruing to him at the time of his separation.

Should the regular member qualify for separation benefits, filing of claim
for the said benefits shall prescribe after four (4) years from the date of
contingency. However, a separated member with 15 years of service can
still claim for retirement benefits at age 60 and may choose to receive
either the 5 year lump sum and pension after the 5-year guaranteed
period or 18 months BMP and pension immediately, subject to the AMC
limit then prevailing at the time of filing.
10.2.5 If the regular member is sixty (60) years old and with total length of service
(TLS) of fifteen (15) years, he should be entitled to retirement benefit,
subject to filing of claim.

10.3 On the Conversion of Special Member to Regular Member

10.3.1 The life insurance policy of a special member whose membership

classification has been converted to regular member by virtue of his
appointment to a position eligible for regular coverage shall be terminated
upon separation from his old position. He shall be provided with ELP
coverage as a regular member effective upon assumption to duty to his
new position.

10.3.2 The coverage under ELP shall be guided by the following:

a. If the member is active, his membership master records (including

MSP) shall be tagged to denote the conversion from LEP to ELP.
b. The member shall be covered under ELP immediately after the
conversion of his membership classification in the database has been
effected.

10.3.3 If the member had previous services as a regular member and has been
paid separation or retirement benefits, he shall be considered as a new
entrant when re-employed in the government service.

10.3.4 The services rendered as a special member shall not be considered part
of RCS for purposes of computing retirement and other benefits under RA
8291. However, such services shall be considered only for purposes of
determining eligibility to retirement and other benefits.

10.4 On Members Holding Multiple Positions

10.4.1 A member holding two or more part-time positions in government shall be
issued only one compulsory life insurance policy and shall only earn
service credit in the position that he selects as basis for coverage. Part
time employment refers to a job with compensation, covered by a valid
appointment whose term specifies working hours of less than forty hours
per week, whether in a single agency or multiple agencies.

10.4.2 For members employed in two or more agencies in government, GSIS

shall only recognize one (1) Remitting Agency (RA) and it shall be the RA
corresponding to the position for which he has been covered by GSIS.
10.4.3 Any additional compulsory life insurance policy issued to a member on
account of a second position that he may have in government shall be
invalid and therefore cancelled immediately.

10.4.4 All life premiums paid on the cancelled policy issued in connection with the
other position shall be added to the cash value or termination value of the
active policy.

10.4.5 After selecting one of two part time jobs as basis for coverage, the
member shall not have the option to transfer the coverage to the other
unless, his services in the covered part time job is terminated.

10.5 Non-Permanent Employees Who Are Daily Wage Earners: These employees are
not qualified to be GSIS members if they are not receiving fixed monthly
compensation.

10.5.1 The monthly equivalent of the salary of non-permanent employee who is

paid on a daily basis shall be his daily wage rate multiplied by 22 days.

10.5.2 The salary record in the MSP of a non-permanent daily wage earner shall
be correspondingly adjusted when he is granted an increase in the daily
wage rate. However, if his daily wage rate is decreased, the original
computation of his monthly salary shall remain.

10.5.3 Payment of retirement premiums (both Personal and Government Share)

for non-permanent services (casual, temporary, contractual) prior to RA
8291 by members who are still in the active service shall no longer be
allowed.

10.6 Change in Date of Birth

10.6.1 The date of birth reflected in the member’s information sheet or agency
remittance advice shall be adopted.

10.6.2 Change of date of birth shall be given due course under the following
conditions:

a. The request for change is made while the member is still in the
government service; and
b. The requesting member submits the original copy of the court order
or birth certificate authenticated by the National Statistics Office
(NSO) as supporting document.

• When submitting a court order, the member shall indicate in the

request for change of date of birth, the contact number of the
court who ordered the change of date of birth, including the
branch and province where the court is located.
• For NSO-authenticated birth certificate, the official watermark of
NSO should be present in the document. Failure on the part of
the member to comply with the said requirements shall be a
ground for rejecting the request.

10.6.3 Notwithstanding the change in the member’s date of birth, the original
amount of insurance as computed during the issuance of the policy shall
not be changed and it shall not result in any adjustment in the endowment
plan under LEP.

RULE III

COLLECTION AND REMITTANCEOF CONTRIBUTIONS AND OTHER AMOUNTS

Section 11 Amounts of Contribution.

11.1 For Regular Members

Effective June 24, 1997 and up to December 31, 2002, the amount of
contributions shall be computed as follows:

Monthly Compensation (MC)

Rate of Contribution

Member

Government Agency

If MC is equal to or less than the prevailing

Average Monthly Compensation (AMC)
during a particular period

9%
12%

If MC is greater than the prevailing AMC

during a particular period:

• Up to the maximum AMC limit

• Amount in excess of the AMC limit

9%

2%

However, effective January 1, 2003, the rate of contribution payable by the

member and government agency shall be 9% and 12% respectively, based on
the actual monthly salary of the member.

11.2 For Special Members

The Special Member shall pay the required life insurance premiums of 3% of the
fixed monthly compensation for both employees’ and government agency’s
share.

Section 12 Budgetary Appropriations to Cover Government Agencies’

Contributions

The government agency shall ensure that the necessary amounts for contributions for
government share shall be included in their respective annual budgets (or budgetary
allocations), including all amounts due the GSIS.

Section 13 Collection of Contributions

13.1. It shall be compulsory upon the government agency to deduct from the fixed
monthly compensation the personal share of the members and to promptly remit
the same to GSIS.
13.2. It is prohibited for a government agency to delay the remittance to GSIS of the
premium contributions deducted from the compensation of the members and use
it for other purposes.

Section 14 Remittance of Contributions

14.1 Each government agency shall remit directly to the GSIS the employees’ and
government agency’s contributions within the first Ten (10) days of the calendar
month following the month to which the contributions apply. The remittance by
the government agency of the contributions to the GSIS shall take priority over
and above the payment of any and all obligations, except salaries and wages of
its employees.

14.2 The government agency shall also deduct from the fixed monthly compensation of
the employee the loan amortizations (consolidated loans, policy loan, emergency
loan, housing loan, and other loans), premium payments (optional, pre-need and
other non-life insurance) and other amounts due the GSIS.

14.3 The said amounts shall be remitted to the GSIS within the first Ten (10) days of
the calendar month following the month when the deductions were effected,
accompanied by supporting lists in the form prescribed by the GSIS.

14.4 The member has the corresponding responsibility to ensure that the required
premium contributions and other amounts due the GSIS that were deducted from
his compensation are promptly remitted to GSIS.

Section 15 Interest on Delayed Remittance

The government agency shall be imposed interest for every month of delay, or a portion
thereof, in the remittance of the monthly premium contributions and other amounts due
the GSIS, at the rate of 2% per month simple interest. Such interest will begin to accrue
at the end of the month following the due month.
Section 16 Effects of Non-Remittance of Contributions and Other Amounts on
the Eligibility to Benefits of Members

16.1 All loan privileges of all the members of the affected agencies will be suspended
and they shall be disqualified to receive the yearly dividends.

16.2 Any unremitted premium contributions and loan amortizations and other amounts
due the GSIS shall be deducted from the proceeds of the loans and claims that
will be due the member.
Section 17 Reports on the Status of Members

The government agency shall report changes in the member’s information, if any, every
month as they take place, in the forms or formats prescribed by the GSIS.

RULE IV

BENEFITS

Section 18 Compulsory Life Insurance Benefits under the Life Endowment

Policy (LEP)

A member under this policy may be entitled to any of the following benefits, depending
on the circumstances:

18.1 Maturity benefits, which is the face amount payable to the member upon maturity
of the policy.

18.2 Cash Surrender Value, which are earned values during the term of the insurance
payable to the member when he is separated from the service before maturity
date of the policy or when he is considered as a case of PTD.

18.3 Death Benefit, which is the face value of the policy payable to designated
beneficiary/beneficiaries or legal heirs, in the absence of the former, upon the
death of a member.

18.4 Accidental Death Benefit (ADB) is an additional benefit equivalent to the amount
of Death Benefit when the member dies by accident.
In this connection, proof must be presented to sufficiently establish that the
cause of the member’s death is accidental.

The right to present sufficient proof to show that death was accidental shall
prescribe if the claim for ADB is filed four (4) years after the death of the
member.

18.5 Cash Dividend. A policyholder is entitled to dividends subject to the guidelines

as approved by the GSIS Board. This is not a guaranteed benefit.

Section 19 Compulsory Life Insurance Benefits under the Enhanced Life Policy
(ELP)

A member under this policy may be entitled to any of the following benefits, depending
on the circumstances:
19.1 Death Benefit equivalent to the latest annual salary multiplied by amount of
insurance (AOI) factor which is 1.5 or 18 times the current monthly salary of the
member or as determined by the GSIS, payable to the legal heirs, less all
outstanding obligations of the member in accordance with the CLIP.

19.2 Termination Value. The policy earns a Termination Value during the life of the
policy computed from the percentage of life insurance premiums actually remitted
and paid to GSIS.

19.2.1 Termination value is equivalent to a percentage of monthly life insurance

premiums as determined by the GSIS, due and paid in full, either by
direct remittance or through an APL facility.
19.2.2 The accumulated termination value will grow at such rate as determined
by the Actuary.
19.2.3 The termination value shall be paid to the member upon his separation
from the government service less all indebtedness of the member with
the GSIS in accordance with CLIP.

19.3 Cash Dividend. A policyholder is entitled to dividends, subject to the guidelines

as approved by the GSIS Board. This is not a guaranteed benefit.

Section 20 Retirement Benefits.

Under this Act, the retirement benefit consists of a monthly pension which is computed
based on years of creditable service and AMC for the last 3 years.

20.1 Eligibility

20.1.1 has rendered at least Fifteen (15) years of service;

20.1.2 is at least Sixty (60) years of age; and
20.1.3 is not receiving a monthly pension benefit from permanent total disability.
20.2 Retirement Benefit Options. A retiring member has the following options:

20.2.1 Five (5) year lump sum equivalent to sixty (60) months of the BMP,
subject to qualification requirements, less all outstanding obligations of
the member in accordance with the CLIP, plus an old-age pension
benefit equal to the BMP payable for life, starting on the first day of the
month following the expiration of the five year guaranteed period; or

20.2.2 A cash payment benefit equivalent to eighteen (18) times of the BMP,
subject to qualification requirements, less all outstanding obligations of
the member in accordance with the CLIP, plus monthly pension for life
payable on the first month following the date of retirement;
20.3 Conversion in the Mode of Retirement. Conversion in the mode of retirement
from R.A. No. 8291 to any other retirement laws and vice versa administered by
the GSIS shall not be allowed.

Those who became GSIS members prior to the implementation of this Act shall
have the option to retire under PD 1146, RA 660, or RA 1616, subject to
eligibility.

20.4 Change of Retirement Benefit Option under RA 8291. Change of retirement

benefit option from eighteen (18) months cash payment plus immediate pension
to five (5) year lump sum, or vice versa, shall not be allowed.

The GSIS shall process the claim for retirement benefits based on the member’s
records in the GSIS database.

20.5 Processing of Retirement Benefits of Members Who Died While their Claims are
Being Processed

20.5.1 For those qualified for retirement benefits:

a. If the deceased member opted for five year lump sum benefit as
indicated in his/her claim for retirement application, his legal heirs
shall be entitled to five-year lump sum benefit equivalent to sixty
(60) months basic monthly pension (BMP). However, the
survivorship pension to qualified primary beneficiaries, if any, shall
be granted after the end of the 5-year guaranteed period, but filing
of claim for survivorship benefit should be done before the end of
the 4-year prescription period.

b. If the deceased member opted for immediate pension as indicated

in his/her claim for retirement benefit his legal heirs shall be entitled
to retirement benefits equivalent to eighteen (18) months of BMP,
plus accrued pension, if any, up to the date of death of the retiree.
The corresponding survivorship pension shall be paid to the
qualified primary beneficiaries, if any, and shall be computed from
the date of death of the retiree, subject to filing of claim.

c. In case the deceased member failed to indicate in his/her

retirement option, it shall be computed as if he/she opted for
immediate pension.

d. The proceeds of retirement benefits shall be paid and distributed to

the legal heirs in accordance with the law on succession under the
Civil Code of the Philippines.
20.5.2 For those not qualified for retirement benefits, the GSIS shall determine
if he/she is qualified to other applicable benefits under RA 8291 or such
other laws administered by the GSIS.

20.6 Effects of Re-Employment

20.6.1 When a retired/separated member is re-employed or reinstated in the

service, his/her previous services credited at the time of his/her
retirement/separation for which a corresponding benefit had been
awarded, shall be excluded in the computation of service. In effect,
he/she shall be considered a new entrant.

20.6.2 However, for those who retired prior to the enactment of RA 8291, the
previous services of a retired/separated member may be added in the
computation of his creditable services (subject to premium-based policy)
upon subsequent retirement under RA 8291 only when both conditions
are met:

a. the retiree re-entered government service before June 24, 1997; and

b. the total amount of benefit previously received, if any, including the

prescribed interest was refunded to GSIS on or before March 2, 2006

20.7 Basis of Computation of Total Service

20.7.1 Total Length of Service (TLS) is the number of years in government

service regardless of status of employment, with or without premium
contributions.

20.7.2 For purposes of computing the total length of service under part-time
status of employment, services shall be converted to their full-time
equivalent using forty-hour week and fifty two-week a year as basis.

20.8 Computation of Creditable Service

The computation of creditable service for the purpose of determining the amount
of benefits payable shall include the period or periods of service with the required
premium contributions.

20.9 Computation of Average Monthly Compensation (AMC)

20.9.1 The AMC shall be computed on the basis of the average salary of the
member for the last 36 months of creditable service immediately
preceding his retirement or separation.
20.9.2 The basis for computing the AMC of a separated or retired member
requesting for computation of benefits shall be the prevailing policy on
AMC at the time the claim is being processed.

20.10 Computation of Revalued Monthly Compensation = AMC plus Seven Hundred

Pesos (P700.00).

20.11 Computation of Basic Monthly Pension – the formula for computing the BMP may
be adjusted subject to the approval of the Board upon the recommendation by
the President and General Manager.

As a general rule, the BMP shall only be computed for those members or
dependents/heirs of members who are eligible to receive benefits under this law.
It shall be computed on the basis of a percentage of the RAMC at the rate of
2.5% for every year of creditable service, but in no case shall it exceed 90% of
the AMC of the member.

The formula for computing BMP shall be:

BMP = RAMC x (2.5% x RCS)

20.12 Adjustment/Increase in Pension

Periodic adjustments of the monthly pension of all existing pensioners shall be

done on the basis of what is sustainable and prudent for the GSIS as
recommended by its Actuary and approved by the Board.

20.13 Policies Affecting Pension Administration

20.13.1 Regardless of the date of retirement, the monthly pension shall

commence on the 1st day of the month following the month of
retirement.
20.13.2 Annual Renewal of Active Status (ARAS) of Old Age and Survivorship
Pensioners is required on their birth month every year.

20.13.3 Effects of Non-renewal of Active Status as Pensioner

a. Suspension of payment of monthly pension

b. Non-entitlement to cash gift if status is suspended at the
time of declaration
c. Non-entitlement to pension increase if status is suspended
at the time of declaration
Section 21 Separation Benefit. - Is either one of the following:

21.1 For those members who are separated from service and who have at least 3
years of service but less than 15 years shall be entitled to cash payment
equivalent to 100% of the member’s AMC for each year of creditable service, but
not less than P12,000.00, payable upon reaching age 60, or upon his separation
if he is already 60 years of age at the time of separation.

21.2 A cash payment equivalent to eighteen (18) times the basic monthly pension
payable at the time of resignation or separation, provided the member resigns or
separates from the service after he has rendered at least 15 years of service and
is below 60 years of age, plus an old-age pension benefit equal to the basic
monthly pension payable monthly for life upon reaching the age of sixty (60).

21.3 Reckoning Date of Separation of Uniformed PNP, BJMP and BFP Personnel
shall be February 1, 1996. The computation of benefit shall be based on their
basic monthly salary (premium-based) when they ceased to be members of the
GSIS.

21.4 Processing of Separation Benefit of Members Who Died While Their Claims are
Being Processed

21.4.1 If the member dies during the pendency of his claim for separation
benefit and he has rendered at least 15 years of creditable service, his
legal heirs shall be entitled to receive cash payment equivalent to
eighteen (18) times the basic monthly pension, plus accrued BMP, if
any, up to the date of death of the member. Thereafter, the primary
beneficiaries shall be entitled to survivorship pension.

21.4.2 If the member dies during the pendency of his claim for separation
benefit and he has rendered less than 15 years of creditable service, his
legal heirs shall be entitled to cash payment equivalent to one hundred
percent (100%) of AMC for each year of creditable service, but not less
than Twelve Thousand Pesos (P12,000.00).
Section 22 Unemployment Benefit

22.1 Conditions for Entitlement to Unemployment Benefit. A member shall be

entitled to the unemployment benefits if the following conditions are met:

22.1.1 he/she was a permanent employee at time of separation;

22.1.2 his/her separation was involuntary due to the abolition of his/her

office or position resulting from reorganization; and
22.1.3 he/she has been paying the required premium contributions for at
least one (1) year but less than 15 years prior to separation.

22.2 Amount, Duration and Payment Of Unemployment Benefit.- The amount

of unemployment benefit is equivalent to 50% of the AMC and shall be
paid in accordance with the following Schedule:

Contributions Made

Benefit Duration

One year but less than

three years

2 months

Three or more years but

less than six years

3 months

Six or more years but than

nine years

4 months

Nine or more years but less

than 11 years

5 months

Eleven or more years but

less than fifteen

6 months

22.3 Those entitled to more than two (2) months of Unemployment Benefits
shall initially receive two (2) monthly payments. A seven-day (7-day)
waiting period shall be imposed on succeeding monthly payments to
determine whether the separated member has found gainful employment
either in the public or private sector.
22.4 In cases of reemployment, all accumulated unemployment benefit paid to
the employee during his/her entire membership with the GSIS shall be
deducted without interest from the separation or retirement benefits, as
the case maybe, to which the member may be entitled to upon his
voluntary resignation, separation or retirement.

Section 23 Disability Benefits.

23.1 Disability refers to any loss or impairment of the normal functions of the
physical and/or mental faculties of a member, which permanently or
temporarily prevents him to continue with his work or engage in any other
gainful occupation resulting in the loss of income.

The corresponding disability benefits for each kind of disability shall be

granted to a member based on the duration of incapacity to work and
actual loss of income.

There are three (3) kinds of disability which shall be determined by the
GSIS based on established medical standards:
• Permanent Total Disability
• Permanent Partial Disability
• Temporary Total Disability

23.2 Policies Governing Disability Benefits:

23.2.1 Permanent Total Disability (PTD) – disability due to injury or

disease causing complete, irreversible and permanent incapacity
that will permanently disable a member to work or to engage in any
gainful occupation resulting to loss of income.

The following disabilities shall be deemed total and permanent:

a. complete loss of sight for both eyes;

b. loss of two limbs at or above the ankle or wrists;
c. permanent complete paralysis of two limbs; and
d. brain injury resulting in incurable imbecility or insanity.
e. such other cases as may be determined and approved by
the GSIS

23.2.2 Permanent Partial Disability (PPD) – arises due to the complete

and permanent loss of the use of any of the following resulting to
the disability to work for a limited period of time:

a.1. any finger

a.2. any toe

a.3. one arm;

a.4. one hand;

a.5. one foot;

a.6. one leg;

a.7. one or both ears;

a.8. hearing of one or both ears;

a.9. sight of one eye;

a.10. such other cases as may be determined and approved by

the GSIS

23.2.3 Temporary Total Disability (TTD) – accrues or arises when the

impaired physical and/or mental faculties can be rehabilitated
and/or restored to their normal functions, but such disability shall
result in temporary incapacity to work or to engage in any gainful
occupation.

23.2.4 Any disability or injury as a result of, or due to grave misconduct,

participation in riots, gross and inexcusable negligence, under the
influence of drugs or alcohol or willful intention to injure or kill
himself or another, shall not be compensable.
23.2.5 The actual loss of income shall refer to the number of days when a
member went on leave of absence without pay (LWOP) reckoned
immediately from the date of commencement of disability and for
the duration of entitlement thereto, based on medical evaluation.
Any LWOP incurred after the duration of entitlement to the benefit
shall not be compensable.

23.2.6 If the member has two or more different contingencies during the
same period of benefit entitlement, he shall be compensated only
once for the overlapping periods.

23.2.7 All injuries, disabilities, illnesses and all other infirmities

compensable under PD 626 shall not be compensable under this
Act.

23.2.8 Any applicable disability benefit shall be suspended when he/she:

a. is re-employed; or
b. recovers from his/her disability as determined by the GSIS,
whose decision shall be final and binding; or
c. fails to present himself for medical examination when required
by GSIS; or
d. is receiving any other pension either from GSIS or another local
or foreign institution or organization.

23.3 Computation of Benefit:

23.3.1 Permanent Total Disability (PTD)

A member who becomes permanently and totally disabled shall be

entitled to the monthly income benefits for life equivalent to the
basic monthly pension (BMP) effective from the date of disability.
23.3.2 Permanent Partial Disability (PPD)

The period of entitlement to PPD benefit shall be determined after

due medical evaluation; but such period of entitlement to the benefit
shall not exceed 12 months for the same contingency. Only the
leave of absence/s without pay incurred during the period of
entitlement, duly certified by the authorized officer of the agency
where he is employed, shall be compensable.

The amount of PPD benefit shall be computed by dividing the BMP

by 30 days and multiplying the quotient by the number of
compensable calendar days of leave of absence without pay
(LWOP).

23.3.3 Temporary Total Disability (TTD)

The period of entitlement to TTD benefit shall be determined after

due medical evaluation and proof of actual loss of work resulting in
loss of income by way of the incurred actual number of days of
leave of absence/s without pay duly certified by the authorized
officer of the agency where he is employed; but such period of
entitlement to the benefit shall not exceed 120 days in one calendar
year. However, if the disability requires more extensive treatment
that lasts beyond 120 days, the payment of the TTD may be
extended by the GSIS but not to exceed a total of 240 days.

Only the leave of absence/s without pay incurred during the period
of entitlement shall be compensable. Entitlement, however, shall
start from the fourth day of the disability.

The amount of TTD benefit shall be computed by multiplying 75%

of the daily salary of the member by the number of days of disability
based on the medical evaluation but not to exceed 240 days for the
same contingency. However, the computed daily salary shall not be
less than seventy pesos (P70.00) but not to exceed P340.00 per
day.

23.3.4 For the purpose of computing the corresponding benefit of inactive

members for each kind of disability, the BMP, with respect to PTD
and PPD, and daily salary, with respect to TTD, shall be computed
as of the time of separation from GSIS.

23.4 Conditions for Entitlement:

23.4.1 Permanent Total Disability (PTD)

23.4.1.1. A member who becomes permanently and totally
disabled shall be entitled to the PTD benefits when:

a. he/she is in the service at the time of disability; or

b. if separated from the service, he has paid at least

thirty six (36) months contributions within the five year
(5) period immediately preceding his/her disability; or
has paid a total of at least one hundred eighty (180)
months contributions prior to his/her disability;
Provided, however, that the following conditions shall
be met:

• he/she is gainfully employed prior to the

commencement of disability resulting in loss of
income as evidenced by any incontrovertible proof
thereof;
• he/she is not a registered member of any social
insurance institution; and
• he/she is not receiving any other pension either
from GSIS or another local or foreign institution or
organization

23.4.1.2. In addition to the monthly income benefits for life, a cash

payment equivalent to eighteen (18) times his/her basic
monthly pension (BMP), shall be paid to a member who
was in the service at the time of his/her permanent total
disability and who has paid a total of one hundred eighty
(180) monthly contributions.

23.4.1.3. A separated member who has at least three (3) years of

service and becomes permanently and totally disabled
but has not paid a total of at least one hundred eighty
(180) monthly contributions prior to his/her disability shall
be entitled only to cash payment equivalent to one
hundred percent (100%) of his/her average monthly
compensation for each year of service with paid
contributions but not less than twelve thousand pesos
(P12,000.00).

23.4.2 Permanent Partial Disability (PPD)

A member whose disability is partial shall be entitled to the PPD

benefit when:

a. he/she is in the service at the time of disability; or

b. if separated from the service, he has paid at least thirty six (36)
months contributions within the five year (5) period immediately
preceding his/her disability; or has paid a total of at least one
hundred eighty (180) months contributions prior to his/her
disability; Provided, however, that the following conditions shall
be met:
• he/she is gainfully employed prior to the commencement of
disability resulting in loss of income as evidenced by any
incontrovertible proof thereof;
• he/she is not a registered member of any social insurance
institution; and
• he/she is not receiving any other pension either from GSIS
or another local or foreign institution or organization

23.4.3 Temporary Total Disability (TTD)

23.4.3.1. A member shall be entitled to the TTD benefit when:

a. he/she is in the service at the time of disability; or

b. if separated from the service, he has paid at least

thirty six (36) months contributions within the five year
(5) period immediately preceding his/her disability; or
has paid a total of at least one hundred eighty (180)
months contributions prior to his/her disability;
Provided, however, that the following conditions shall
be met:

• he/she is gainfully employed prior to the

commencement of disability resulting in loss of
income as evidenced by any incontrovertible proof
thereof;
• he/she is not a registered member of any social
insurance institution; and
• he/she is not receiving any other pension either
from GSIS or another local or foreign institution or
organization

23.4.3.2. The payment of TTD benefit may be extended by the

GSIS up to a maximum of two hundred forty (240) days,
subject to medical evaluation.
23.4.4 Notice and Filing of Claims and Other Documents Required. - A
written notice of sickness or injury shall be given by a member or
anybody in his/her behalf within one (1) month from the date of the
occurrence of the contingency. If the member is in the service, the
notice shall be given to the GSIS; if separated from the service, the
member shall notify the GSIS directly.

The notice must contain the following information:

a. Name and address of the member;
b. His/Her agency if in the government or employer if in the
private sector;
c. Date and nature of sickness or injury;
d. Place of confinement; and
e. Any other pertinent information that may be required by the
GSIS.

23.4.5 Periodic Medical Report – The disabled member, except those with
permanent partial disability, shall submit annual medical reports on
his/her impairment, duly certified by his/her attending physician,
and/or submit himself/herself to annual medical and physical
examination. If he/she fails to comply with this requirement, the
payment of his/her benefit shall be suspended and shall be
resumed only upon his/her compliance thereto provided that,
he/she is found still entitled to the benefits. The benefit
corresponding to the period of suspension shall also be paid.

23.4.6 Forfeiture of Disability Benefits. - All the foregoing provisions

notwithstanding, any member who is enjoying disability benefits
shall automatically forfeit his/her right to the continued enjoyment
thereof if he/she refuses or deliberately fails to:

a. have himself/herself medically treated by a physician when

required by the GSIS; or
b. take the prescribed medications ; or
c. have himself/herself confined in a hospital without justifiable
reason, when such confinement is required by the GSIS; or
d. avail himself/herself of such rehabilitation facilities as may be
duly recommended by the GSIS and made available for him/her;
or
e. Observe such precautionary and /or preventive measures as
prescribed by a physician or expressly required of him/her to
prevent the aggravation or continuance of his/her disability.

However, upon compliance with the requirements, his/her benefits

shall be resumed if he/she is still qualified.
Section 24 Survivorship Benefits

24.1 When a member or pensioner dies, the beneficiaries shall be entitled to the
following survivorship benefits, whichever is applicable:
24.1.1. Survivorship pension consisting of:

a. the basic survivorship pension which is fifty percent (50%) of the

BMP; and

b. the dependent children’s pension equivalent to 10% of the BMP for

each child but not to exceed fifty percent (50%) of the BMP.

24.1.2. Cash payment equivalent to eighteen (18) months BMP;

24.1.3. Cash payment equivalent to one hundred percent (100%) of the AMC for
every year of service with paid contributions but not less than Twelve
Thousand Pesos (P12,000.00).

24.2 Survivorship Benefits of Members in Active Service.

24.2.1. If at the time of death, a member was in the service and has rendered at
least fifteen (15) years of creditable service:

a. his primary beneficiaries shall receive the survivorship pension and

cash payment equivalent to 18 x the BMP; or

b. in the absence of primary beneficiaries, his secondary beneficiaries

shall receive the cash payment equivalent to 18 x the BMP; or
c. in the absence of secondary beneficiaries, the legal heirs shall
receive the cash payment equivalent to 18 x the BMP.

24.2.2. If at the time of death, the member was in the service with less than
fifteen (15) years of creditable service; his primary beneficiaries shall
receive the cash payment equivalent to 100% of the AMC for every year
of creditable service.

24.3 Survivorship Benefits of Inactive Members

24.3.1. Primary beneficiaries of inactive members who have at least 15 years of

creditable service shall receive the survivorship pension only.

a. Primary beneficiaries of inactive members who have at least 3

years but less than 15 years of creditable service and were less
than 60 years old at the time of death shall receive the cash
payment equivalent to 100% of the AMC for every year of
creditable service, but not less than P12,000.00.
b. Primary beneficiaries of inactive members who have less than 15
years of creditable service but were at least 60 years old at the time
of separation and have received the corresponding separation
benefit, shall not be entitled to survivorship benefits. However, if the
member has not received yet his separation benefit within four
years after his/her separation, the primary beneficiaries shall
receive the cash benefit equivalent to 100% of the inactive
member’s AMC for every year of creditable service, but not less
than P12,000.00.

24.4 Payment of Survivorship Benefits

24.4.1. The survivorship benefits shall be paid as follows:

a. When the dependent spouse is the only survivor, he shall receive the
basic survivorship pension;

b. When only the dependent children are the survivors, they shall be
entitled only to the dependent children’s pension equivalent to 10% of
the BMP for every dependent child, not exceeding five (5), counted
from the youngest and without substitution;

c. When the survivors are the dependent spouse and the dependent
children, the dependent spouse shall receive the basic survivorship
pension for life or until he remarries or cohabits, and the dependent
children shall receive the dependent children’s pension.

d. When the dependent spouse and dependent children are already

receiving the basic survivorship pension and dependent children’s
pension, respectively, any subsequent death, emancipation or
disqualification of any one of them shall not entitle the other
beneficiaries to the forfeited share.
e. In the absence of a natural guardian, the guardian de facto of
dependent children, as well as the physically or mentally incapacitated
dependent children, must file a Petition for Guardianship to be able to
claim the survivorship benefits on behalf of the dependent children.

f. When the pensioner dies within the 5-year period after receiving the
five-year lump sum, the survivorship pension shall be paid only after
the end of the said five-year period. However, filing of claim for
survivorship benefit should be done before the end of the 4-year
prescription period.
24.5 Conditions for Entitlement to Survivorship Benefits

The primary and secondary beneficiaries, except dependent children, shall be

entitled to applicable survivorship benefits, subject to the following:

a. not engaged in any gainful occupation as defined in Sec 2 (p) of RA

8291;
b. the surviving spouse and the deceased member were living together
as husband and wife;
c. not gainfully engaged in a business or economic activity (self-
employed);
d. employed/engaged in a business or economic activity but receiving
income less than the minimum compensation of government
employees.
e. not receiving any other pension from the GSIS or another local or
foreign institution or organization; and
f. In the case of the dependent spouse, payment of the basic
survivorship pension shall discontinue when he remarries, cohabits, or
engages in common-law relationship.

The foregoing conditions, except the last one, must be present immediately
preceding the death of the member or pensioner.

Section 25 Funeral Benefits

25.1. Funeral benefit is intended to help defray the expenses incident to the burial and
funeral of the deceased member, pensioner or retiree under RA 660, RA 1616,
PD 1146 and RA 8291. It is payable to any qualified individual, in accordance
with the following order of priority:

a. Legitimate spouse,

b. Legitimate child who spent for the funeral services, or

c. Any other person who can show incontrovertible proof that he shouldered
the funeral expenses of the deceased

25.2. Amount of Funeral Benefit.- The amount of funeral benefit are as follows:

a. The prevailing amount approved by the Board of Trustees at the time of death
of the member or pensioner.

b. For uniformed members of the PNP, BJMP and BFP, the amount of funeral
benefit is fixed at P10,000.00.
25.3 Conditions for Entitlement.- Funeral benefit shall be paid upon the death of:

a. an active member; or

b. a member who has been separated from the service with more than 15
years of creditable service, but entitled to future separation or retirement
benefits; or

c. old age or disability pensioner; or

d. a retiree who at the time of his retirement is at least 60 years of age and
with at least 20 years of service but who opts to retire under RA 1616 on
or after June 24, 1997; or

e. a member who retired under RA 1616 prior to June 24, 1997 with at least
twenty (20) years of service, regardless of age.

RULE V

ADJUDICATION OF CLAIMS AND DISPUTES

Section 26 Committee on Claims - The Committee on Claims (CoC) shall evaluate

and resolve issues / complaints arising from any dispute in the settlement of claims,
such as, but not limited to the following:

a. interpretation of an existing policy or procedure;

b. no existing program or system to process a claim;
c. no existing policy as basis to process a claim;
d. appeal from an aggrieved party to a settled claim;
e. findings from either the Internal Audit Services Office or the Commission on
Audit that are disputable; and
f. implementation of and Order from any Court, quasi-judicial body or duly
authorized entity due to its being in conflict or inconsistent with existing
GSIS laws, policies, rules and regulations; and
g. any other matter related to any or all of the foregoing which is necessary for
their determination

The CoC shall report to the Board on a regular basis the actions taken on
issues/complaints elevated to the said Committee.

26.1. Disputes on claims shall be appealed to the Committee on Claims within 60 days
from date the member received the check representing payment of claim benefit
or notice of disapproval. The Committee on Claims shall evaluate the appeal and
shall notify the claimant of Committee’s decision.

26.2. Further appeal on the Committee’s decision shall be filed to the Board within 60
days from receipt of Committee’s decision.
Section 27 Quasi-Judicial Functions of the GSIS. - The quasi-judicial functions of
the GSIS shall be vested in its Board of Trustees.

27.1. The GSIS shall have original and exclusive jurisdiction to settle any dispute
arising under Republic Act No. 8291, Commonwealth Act No. 186, as amended,
including its implementing rules and regulations, policies and guidelines, and
other laws administered by the GSIS with respect to:

27.1.1. Coverage of government agencies and employees;

27.1.2. Entitlement of members to the following benefits under these Rules:

a. Separation benefits
b. Unemployment or involuntary separation benefits
c. Retirement benefits
d. Disability benefits
e. Survivorship benefits
f. Funeral benefits
g. Life Insurance benefits

27.1.3. Collection and payment of contributions;

27.1.4. Housing loans and all its related policies, procedures and guidelines;
27.1.5. Optional Life Insurance and Pre-Need Benefits;
27.1.6. Criminal actions arising from this Act; and
27.1.7. Any other matter related to any or all of the foregoing which is necessary
for their determination.

Section 28 Hearing Officer, Powers and Duties. - Any member of the Board or
official of the GSIS who is a lawyer may be designated by the Board as Hearing Officer,
with the following powers and duties:

28.1. To receive oral and documentary evidence of the parties to a case and to rule on
their admissibility;

28.2. To issue summons, subpoenas, subpoenas duces tecum, orders, and other
similar processes necessary for the proper determination and disposition of the
case before him/her;

28.3. To appoint a counsel de oficio for pauper litigants who are unable to secure the
assistance of counsel, if they request for such assistance;

28.4. To administer oaths or affirmations;

28.5. To submit findings and recommendations to the Board within the time prescribed
in these Rules; and
28.6. To perform such other acts as may be directed by the Board or as may be
necessary for the effective and efficient discharge of his/her powers and duties.

Section 29 Clerk of the GSIS.- The Corporate Secretary or his designated

representative shall be the Clerk of the GSIS, with the following powers and duties;

29.1. To issue under the seal of the GSIS all ordinary writs and processes incident to
pending cases, the issuance of which does not involve the exercise of functions
appertaining to the Board, or Hearing Officer or Board Officer, and make out and
sign all writs and processes issuing from the GSIS.

29.2. To perform, in the absence of the Board or the Hearing Officer, all the duties of
the Board or the Hearing Officer receiving applications, petitions, inventories,
reports, and the issuance of all orders and notices that follow as a matter of
course under the Rule;

29.3. To safely keep all records, papers, files, exhibits and public property committed
to his charge, and the seal of the GSIS;

29.4. To keep a general docket, each page of which shall be numbered and prepared
for receiving all the entries in a single case; and to enter therein all cases,
numbered consecutively in the order in which they were received; and, under the
heading of each case and a complete title thereof, the date of each paper filed or
issued, of each order of judgment entered, and of each step taken in the case;

29.5. To keep a judgment book containing a copy of each judgment rendered by the
Board in the order of the date; and a book of entries of judgment or orders of the
Board;

29.6. To keep an execution book in which he or his deputy shall record at length in
chronological order each execution, and the officer’s return thereon, by virtue of
which real property has been sold;
29.7. To prepare, for any person demanding the same, a copy certified if proper under
the seal of the GSIS of any paper, record, order, judgment, or entry in this office,
for the fees prescribed by this Rule;

29.8. To compile the decisions of the Board and cause their publication in a series to
be known as GSIS Reports; and

29.9. To keep such other books and perform such other duties as the Board may
direct.
Section 30 Prescription.- Claims for benefits under Republic Act No. 8291, except
for life insurance and retirement, shall prescribe after four (4) years from date of
contingency.

Section 31 Construction.- The provisions of these sections shall be liberally

construed in order to promote their purpose and to assist the parties in obtaining just,
speedy, and inexpensive determination of every action and proceeding.

Section 32 Suppletory Application of Rules of Court.- In the absence of any

applicable provision in these Rules, the pertinent provisions of the Revised Rules of
Court of the Philippines shall, whenever practicable and convenient, be applied by
analogy or in a suppletory character and effect.

Section 33 General Principles in Hearing and Determination of Cases.- The

proceedings before the hearing officer shall be summary and non-litigious in nature and
the technicalities of law and procedure and the rules obtaining in the courts shall not
strictly apply.

In the hearing, investigation and determination of any question or controversy, and in

exercising any duty or power under the law and this Rule, the Board or Hearing Officer
shall act on the merits of the case with the end in view of promoting justice and equity.

Section 34 Caption and Title.- Each pleading shall contain a caption setting forth the
name, “Republic of the Philippines,” followed by the name, “Government Service
Insurance System” immediately below and, below the latter the name “Metro Manila.”

The full names of all the parties shall be stated in the caption of the Petition.

Section 35 Parties.- The party initiating the action shall be called the “Petitioner” and
the party against whom the action is brought shall be called “Respondent.”
Section 36 Who May File Petition.- The GSIS, in appropriate cases, or any person
whose rights are or may be prejudiced by the operations or the enforcement of Republic
Act No. 8291, Commonwealth Act No. 186, as amended, including its implementing
rules and regulations, policies and guidelines and other laws administered by the GSIS
on matters herein above specified, may file a petition before the GSIS either personally
or through counsel.

Section 37 Contents of the Petition. - The petition shall state the following:
37.1. The full name, address and legal capacity of the petitioner;
37.2. The full name and address of the respondent;
37.3. A clear and concise statement of the petitioner’s cause or causes of action,
specifying therein the particular section/s of the law or rule violated or sued upon.
If the basis of the action is a rule, regulation, resolution, memorandum or order of
the Board, the date of the promulgation thereof shall be stated and a copy
thereof attached; and
37.4. The relief sought.

Section 38 Verified Pleadings. - All pleadings shall be verified.

Section 39 Prohibited Pleading and Motions. - The following pleadings, motions or

petitions shall not be allowed in the cases covered by this Rule:

39.1. Motions to dismiss

39.2. Motions for a bill of particulars
39.3. Motions for new trial, or for reopening of trial
39.4. Petitions for relief from judgment
39.5. Motions for extension of time to file pleading, affidavits or any other paper
39.6. Memoranda
39.7. Petition for certiorari, mandamus prohibitions against any interlocutory order
issued by the Board or Hearing Officer
39.8. Motion to declare the defendant in default
39.9. Dilatory motions for postponement
39.10. Replies
39.11. Third party complaints
39.12. Interventions
Section 40 Filing and Service of Pleadings. - All pleadings shall be filed with the
Clerk of the GSIS at the Office of the Corporate Secretary.

The party filing any pleadings shall serve the respondent or opposing party with a copy
thereof and its supporting documents with proof of service thereof.

Section 41 Summons.- Upon the filing of a petition; the Clerk of the GSIS shall
immediately indorse the same to the Hearing Officer for the issuance of the Summons.

Within two (2) days from the receipt of the indorsement from the Clerk of the GSIS, the
Hearing Officer shall issue the corresponding summons to the respondent/s together
with a copy of the petition and other supporting documents

Section 42 Responsive Pleading.- The respondent shall file his Comment or Answer
to the Petition within ten (10) days after service of summons.

Section 43 Effect of Failure to Answer.- Should the respondent fail to answer the
petition within the reglementary ten (10) days period herein provided, the Board motu
proprio, or on motion of the petitioner, shall render judgment as may be warranted by
the facts alleged in the petition and limited to what is prayed for therein except as to the
amount of damages which the Board may decide in its discretion.

Section 44 Proceedings before the Hearing Officer

44.1. Preliminary Conference.- Before conducting the hearing, the Hearing Officer may
call the parties to a preliminary conference for the purpose of defining and
simplifying the issues in the Petition, entering into admissions or stipulations of facts
and threshing out all other preliminary matters
44.2. Affidavits, Hearing and Judgment.-
a. Whenever required and within ten (10) days from receipt of the order by
the Hearing Officer, the parties shall submit the affidavits of witnesses
and other evidences on the factual issues, together with a brief statement
of their positions setting forth the law and the facts relied upon by them.

b. The affidavits to be submitted shall state only facts of direct personal

knowledge of the affiants which are admissible in evidence, and shall
show their competence to testify to the matters stated.
c. A violation of this requirement shall be cause to expunge the inadmissible
affidavit or portion thereof from the record.
d. Except in criminal actions arising from this Act, the Hearing Officer shall
determine whether the findings and recommendations may be rendered,
without need of a formal hearing, on the basis of the pleadings, affidavits
and other evidence, and position/s statements submitted by the parties; in
which case, he may require the parties to submit their Position Papers
within a period of twenty (20) days from notice. The Hearing Officer shall
render his findings and recommendations not later than thirty (30) working
days from the submission of the Position Paper or the last pleading.

e. In cases where the Hearing Officer deems it necessary to hold a hearing

to clarify specific factual matters before rendering his findings and
recommendations, he shall set the case for hearing for the purpose. At
such hearing, witnesses whose affidavits were previously submitted may
be asked clarificatory questions by the proponent and by the Hearing
Officer and may be cross-examined by the adverse party.

f. The order setting the case for hearing shall specify the witnesses who will
be called to testify, and the matters on which their examination will deal.

44.3. Findings and Recommendations of Hearing Officers.- Within thirty (30) working
days from the time the parties have closed their respective evidence and filed
their last pleading, the Hearing Officer shall submit his findings and
recommendations to the Board, together with documentary and testimonial
evidence presented in the case.
44.4. Decision of the Board. - The Board shall decide the case transmitted to it by the
Hearing Officer within thirty (30) days from its submission. If the case was heard
directly by the Board, it shall render its decision thereon within thirty (30) working
days from the time case is submitted by the parties for decision.
44.5. Appeals. - Within fifteen (15) days from receipt of notice of decision or award, the
aggrieved party may appeal the decision of the GSIS Board of Trustees to the
Court of Appeals by filing a verified Petition for Review under Rule 43 of the
Revised Rules of Court.
Pending cases and those filed prior to July 1, 1997, shall be governed by the
applicable rules of procedures.

44.6. Execution of Decision.- When no Petition for Review is filed and there is no order
to stay by the Board, by the Court of Appeals or by the Supreme Court, any
decision or award of the Board shall be enforced and executed in the same
manner as decisions of the Regional Trial Court. For this purpose, the Board
shall have the power to issue to the City or Provincial Sheriff or its appointed
sheriff such writs of execution as may be necessary for the enforcement or such
decision or award, and any person who shall fail or refuse to comply with such
decision, award, writ or process after being required to do so, shall, upon
application by the GSIS, be punished for contempt.

RULE VI

FUNDS OF THE GSIS

Section 45 Funds.

45.1. All contributions described and payable under Rule III of this IRR, together with
their earnings and accruals, shall constitute the GSIS Social Insurance Fund.
The said Fund shall be used to finance the benefits administered by the GSIS
under RA 8291. In addition, the GSIS shall administer the optional life insurance
and pre-need plans under this IRR, the Employee’s Compensation Insurance
Fund created under PD 626, as amended, the General Insurance Fund created
under Act No. 656, as amended, and such other special funds existing or that
may be created for special groups or persons rendering services to the
government. The GSIS shall maintain the required reserves to guarantee the
fulfillment of its obligations under RA 8291.
45.2. The funds of the GSIS shall not be used for purposes other than what are
provided for under RA 8291. Moreover, no portion of the funds of the GSIS or
income thereof shall accrue to the General Fund of the national government and
its political subdivisions, instrumentalities and other agencies, including
government-owned and controlled corporations except as may be allowed under
the Act.

Section 46 Deposits and Disbursements.- All revenues collected and all accruals
thereto shall be deposited, administered and disbursed in accordance with the law. A
maximum expense loading of twelve percent (12%) of the yearly revenues from all
sources may be disbursed for administrative and operational expenses as may be
otherwise approved by the President of the Philippines on the basis of actuarial and
management studies.

Section 47 Investment of Funds.- The funds of the GSIS which are not needed to
meet the current obligations may be invested under such terms and conditions and
rules and regulations as may be prescribed by the Board; Provided, That Investments
shall satisfy the requirements of liquidity, safety/security and yield in order to ensure the
actuarial solvency of the funds of the GSIS.

47.1. For purposes of transparency and accountability, the GSIS shall report to the
Houses of Congress, on an annual basis, investments in the following:
47.1.1. In interest-bearing bonds or securities or other evidence of
indebtedness of the Government of the Philippines;

47.1.2. In interest-bearing deposits or securities of any domestic bank doing

business in the Philippines;

47.1.3. In direct housing loans to members and group housing projects

secured by first mortgage, giving priority to the low-income groups; and
in short-and medium-term loans to members such as salary, policy,
educational, emergency, stock purchase plan and other similar loans:

47.1.4. In bonds, securities, promissory notes or other evidence of

indebtedness of educational or medical institutions to finance the
construction, improvement and maintenance of schools and hospitals;

47.1.5. In real estate property, including shares of stocks involving real estate
property and investments secured by first mortgages on real estate or
other collaterals acceptable to the GSIS:

47.1.6. In debt instruments and other securities traded in the secondary

markets;

47.1.7. In loans to, or in bonds, debentures, promissory notes or other

evidence of indebtedness of any solvent corporation created or
existing under the laws of the Philippines;

47.1.8. In investments in stocks for trading, whether common and preferred, of

any solvent corporation or financial institutions.

47.1.9. In investments in the equity of any establishment, firm or entity, either

fully or partially owned by GSIS;

47.1.10. In domestic mutual funds including investments related to the

operations of mutual funds; and

47.1.11. In foreign mutual funds and in foreign currency deposits or foreign

currency-denominated debts, non-speculative equities and other
financial instruments or other assets issued in accordance with existing
laws of the countries where such financial instruments are issued:

47.2. Records and Reports.- The GSIS shall maintain appropriate books of accounts,
including electronic records, to record its assets, liabilities, income, expenses,
receipts and disbursements of funds and other financial transactions and
operations. The GSIS shall keep and cause to be kept such records, as may be
necessary for the purpose of making actuarial studies, calculations and
valuations of the funds of the GSIS including such data needed in the
computation of rates of disability, mortality, morbidity, separation and retirement
among the members and any other information useful for the adjustment of
benefits of the members.

47.3. Examination and Valuation of Funds. - The GSIS shall make an actuarial
examination and valuation of its funds in accordance with accepted actuarial
principles every three (3) years to coincide with the review of the Insurance
Commission.

47.4. Exemption of GSIS and its Assets and Funds from Taxes, Assessments, Fees,
Charges, and Duties-State Policy.

a. It is declared policy of the State that the actuarial solvency of the funds of
the GSIS shall be preserved and maintained at all times and that
contribution rates necessary to sustain the benefits under this Act shall be
kept as low as possible in order not to burden the members of the GSIS
and their government agency.

b. Accordingly, notwithstanding any laws to the contrary, the GSIS, its

assets, properties, revenues including all accruals thereto, and benefits
paid, are exempt by virtue of RA 8291 from all taxes, assessments, fees,
charges and duties of all kinds as well as all legal proceedings.

c. These exemptions shall continue unless expressly and specifically

revoked and any assessment against the GSIS, as of the approval of RA
8291, are hereby considered paid;

d. All laws, ordinances, regulations, issuances, opinions or jurisprudence

contrary to or in derogation of this provision are deemed repealed,
superseded and rendered ineffective and without legal force and effect.

e. These exemptions shall not be affected by subsequent laws to the

contrary, unless Section 39 of RA 8291 is expressly, specifically and
categorically revoked or repealed by law and a provision is enacted to
substitute or replace the exemptions grant. This provision is essential to
maintain or protect the solvency of the fund, notwithstanding, and
independently of the guaranty of, the national government to secure the
solvency of GSIS funds or the payments of its liabilities to its members.

47.5. Exemption of all Funds of the GSIS from Tax, Attachment, Execution, Levy or
Other Legal Processes.- The funds and/or the properties referred to herein as
well as the benefits, sums or monies corresponding to the benefits under this Act
shall be exempt from attachment, garnishment, execution, levy or other
processes issued by the courts, quasi judicial agencies or administrative bodies
including Commission on Audit (COA) disallowances and from all financial
obligations of the members, including his pecuniary accountability arising from or
caused or occasioned by his exercise or performance of his official functions or
duties, or incurred relative to or in connection with his position or work except
when his monetary liability, contractual or otherwise, is in favor of the GSIS.

47.6. Government Guarantee. - The Government of the Republic of the Philippines

guarantees the fulfillment of the obligations of the GSIS to its Members as and
when they fall due.

VII

ADMINISTRATION

Section 48 Implementing Body. - The Government Service Insurance System as

created under Commonwealth Act No. 186 shall implement the provisions of RA 8291.

Section 49 Powers and Functions of the GSIS. - The GSIS shall exercise the
following powers and functions:

49.1. To formulate, adopt, amend and/or rescind such rules and regulations as may be
necessary to carry out the provisions and purposes of RA 8291, as well as
ensure the effective execution of the powers, functions, duties, and
responsibilities of the GSIS, its officers and employees;

49.2. To adopt or approve the annual and supplemental budget of receipts and
expenditures including salaries and allowances of the GSIS personnel; and to
authorize such capital and operating expenditures and disbursements of the
GSIS as may be necessary and proper for the effective management and
operation of the GSIS;

49.3. To invest the funds of the GSIS, directly or indirectly, in accordance with the
provisions of RA 8291;

49.4. To acquire, utilize and dispose of, in any manner recognized by law, real or
personal property in the Philippines or elsewhere necessary to carry out the
purposes of RA 8291;

49.5. To conduct continuing actuarial and statistical studies and valuations to

determine the financial condition of the GSIS and, taking into consideration such
studies and valuations and the limitations herein provided.

49.6. Re-adjust the benefits, contributions, premium rates, interest rates or the
allocation or re-allocation of the funds to the contingencies covered;

49.7. To have the power of succession;

49.8. To sue and be sued;

49.9. To enter into, make, perform and carry out contracts of every kind and
description with any person, firm or association or corporation, domestic or
foreign;

49.10. To carry on any other lawful business whatsoever in pursuance of, or in

connection with the provisions of this Act;

49.11. To have one or more offices in and outside of the Philippines, and to conduct its
business and exercise its powers throughout and in any part of the Republic of
the Philippines and/or any or all foreign countries, states and territories:
Provided, That the GSIS shall maintain a branch office in every province where
there exists a minimum of fifteen thousand (15,000) active members and where
the setting up of the branch office is financially viable;

49.12. To borrow funds from any source, private or government, foreign or domestic,
only as an incident in the securitization of housing mortgages of the GSIS or to
finance its receivables from any government or private entity;

49.13. To invest, own or otherwise participate in equity in any establishment, firm, or

entity, domestic or foreign;

49.14. To approve appointments in the GSIS except appointments to positions which

are policy determining, primarily confidential or highly technical according to the
Civil Service rules and regulations; Provided, That all positions in the GSIS shall
be governed by a compensation and position classification system and
qualifications standards approved by the GSIS Board of Trustees based on a
comprehensive job analysis and audit of actual duties and responsibilities:
Provided, further, That the compensation plan shall be comparable with the
prevailing compensation plans in the private sector and shall be subject to
periodic review by the Board no more than once every four (4) years without
prejudice to yearly merit review or increases based on productivity and
profitability;

49.15. To design and adopt an Early Retirement Incentive Plan (ERIP) and/or financial
assistance for the purpose of retirement for its own personnel;
49.16. To fix and periodically review and adjust the rates of interest and other terms and
conditions for loans and credits extended to members or other persons, whether
natural or judicial;

49.17. To enter into agreement with the Social Security System or any other entity,
enterprise, corporation or partnership for the benefit of members transferring
from one system to another subject to the provision of Republic Act No. 7699,
otherwise known as the Portability Law;
49.18. To be able to float proper instruments to liquefy long-term receivables by selling
the same in the secondary market;

49.19. To submit annually, not later than June 30, a public report to the President of the
Philippines and the Congress of the Philippines regarding its activities in the
administration and enforcement of RA 8291 during the preceding year, including
information and recommendations on broad policies for the development and
perfection of the programs of the GSIS;

49.20. To maintain a Provident Fund, which consists of contributions made by both the
GSIS and its officials and employees and their earnings, for the payment of
benefits to such officials and employees or their heirs under such terms and
conditions as it may prescribe;

49.21. To approve and adopt guidelines affecting investments, insurance coverage of

government properties, settlement of claims, disposition of acquired assets,
privatization or expansion of subsidiaries, development of housing projects,
increased benefit and loan packages to members, and the enforcement of the
provisions of this Act;

49.22. Any provision of law to the contrary notwithstanding, to authorize the payment of
extra remuneration to the officials and employees directly involved in the
collection and/or remittance of contributions, loan repayments and other monies
due to the GSIS at such rates and under such conditions as it may adopt:
Provided, That the best interest of the GSIS shall be observed;

49.23. To determine, fix and impose interest upon unpaid premiums due from the
government agency and employees;

49.24. To ensure the collection or recovery of all indebtedness, liabilities and/or

accountabilities, including unpaid premiums or contributions in favor of the GSIS
arising from any cause or source whatsoever, due from all obligors, whether
public or private;
49.25. For this purpose, the Board shall demand payment or settlement of such
obligations within thirty (30) days from the date the obligation becomes due, and
in the event of failure or refusal of the obligor or debtor to comply with the
demand, to initiate or institute the necessary or proper actions or suits, criminal,
civil, administrative or otherwise, before the courts, tribunals, commissions,
boards, or bodies of proper jurisdiction within thirty (30) days reckoned from the
expiry date of the period fixed in the demand within which to pay or settle the
account;

49.26. To design and implement programs that will promote and mobilize savings and
provide additional resources for social security expansion and at the same time
afford individual members appropriate returns on their savings/investments. The
programs shall be so designed as to spur socio-economic take-off and maintain
continued growth; and

49.27. To exercise such powers and perform such other acts as may be lawful,
necessary, useful, incidental or auxiliary to attain the purposes and objectives of
RA 8291 and carry out its provisions.

Section 50 The Board of Trustees; Its Composition; Tenure and Compensation.

50.1. The corporate powers and functions of the GSIS shall be vested in and exercised
by the Board of Trustees composed of the President and General Manager of the
GSIS and Eight (8) other members to be appointed by the President of the
Philippines, whose representation shall be as follows:

a. One (1) from either the President of the Philippine Public School Teachers
Association (PPSTA) or the President of the Philippine Association of
School Superintendent (PASS);

b. Two (2) from leading organizations or associations of government

employees/retirees;

c. Four (4) from the banking, finance, investment, and insurance sectors;
and

d. A recognized member of the legal profession who at the time of

appointment is also a member of the GSIS.

The Trustees shall elect from among themselves a Chairman while the President
and General Manager of the GSIS shall automatically be the Vice-Chairman

50.2. The Trustees, except the President and General Manager who shall cease as
trustee upon his separation, shall hold office for six (6) years without
reappointment, or until their successors are duly appointed and qualified.
Vacancy, other than through the expiration of the term, shall be filled for the
unexpired term only. The members of the Board shall be entitled to a per diem of
Two Thousand Five Hundred Pesos (P2, 500.00) for each board meeting actually
attended by them, but not to exceed Ten Thousand Pesos (P10, 000.00) a month
and reasonable transportation and representation allowances as may be fixed by
the Board.

Section 51 Powers and Functions of the Board of Trustees. - The Board of

Trustees shall have the powers and functions:

51.1. To formulate the policies, guidelines and program to effectively carry out the
purposes of RA 8291;
51.2. To promulgate such rules and regulations as may be necessary or proper for the
effective execution of the powers, functions, duties and responsibilities of the
GSIS, its officers and employees;

51.3. To have the primary duty to receive and hear appeals for administrative remedies
involving disciplinary actions against GSIS employee, before such appeals are
referred to the courts as formal complaints;

51.4. Upon the recommendation of the President and General Manager, to approve
the annual and supplemental budget of receipts and expenditures of the GSIS,
and to authorize such operating and capital expenditures and disbursements of
the GSIS as may be necessary or proper for the effective management,
operation and administration of the GSIS.

51.5. Upon the recommendation of the President and General Manager, to approve
the GSIS’ organizational and administrative structures and staffing pattern, and
to establish, fix, review, revise and adjust the appropriate compensation package
for the officers and employees of the GSIS with reasonable allowances,
incentives, bonuses, privileges and other benefits as may be necessary or proper
for the effective management, operation and administration of the GSIS, which
shall be exempt from Republic Act No. 6758, otherwise known as the Salary
Standardization Law and Republic Act No. 7430, otherwise known as the Attrition
Law;

51.6. To fix and periodically review and adjust the rates of interest and other terms and
conditions for loans and credits extended to its members or other persons,
whether natural or juridical;

51.7. The provision of any law to the contrary notwithstanding, to compromise or

release, in whole or in part, any claim or to settle liability to the GSIS, regardless
of the amount involved, under such terms and conditions as it may impose for the
best interest of the GSIS;

51.8. To approve and adopt guidelines affecting investments, insurance coverage of

government properties, settlement of claims, disposition of acquired assets,
development of housing projects; increased benefit and loan packages to
members, and the enforcement of the provisions of this Act.

51.9. To determine, fix and impose interest upon unpaid or unremitted premiums
and/or contributions; and

51.10. To do and perform any and all acts necessary, proper or incidental to the
attainment of the purpose and objectives of this Act.
Section 52 Appointment, Qualifications, and Compensation of the President and
General Manager of Other Personnel.

52.1. The President and General Manager of the GSIS shall be its Chief Executive
Officer and shall be appointed by the President of the Philippines. He shall be a
person with management and investments expertise necessary for the effective
performance of his duties and functions under this Act.

52.2. The GSIS President and General Manager shall be assisted by one or more
executive vice-presidents, senior vice-presidents, vice-presidents and managers
in addition to the usual supervisory and rank-and-file positions who shall be
appointed and removed by the President and General Manager with approval of
the Board, in accordance with the existing Civil Service rules and regulations.

Section 53 Powers and Duties of the President and General Manager

53.1. The President and General Manager of the GSIS shall among others, execute
and administer the policies and resolutions approved by the Board and direct and
supervise the administration and operations of the GSIS.

53.2. The President and General Manager, subject to the approval of the Board, shall
appoint the personnel of the GSIS, remove, suspend, or otherwise discipline
them for cause, in accordance with existing Civil Service rules and regulations,
and prescribe their duties and qualifications to the end that only competent
persons may be employed.

Section 54 Auditor.

54.1. The Chairman of the Commission on Audit shall be the ex officio auditor of the
GSIS. For this purpose, he may appoint a representative who shall be the
Auditor of the GSIS, and the necessary personnel to assist said representative in
the performance of his duties.

54.2. The Chairman of the Commission on Audit or his authorized representative shall
submit to the Board soon after the close of each calendar year, an audited
statement showing the financial condition and progress of the GSIS for the
calendar year just ended.
Section 55 Legal Counsel.

55.1. The Government Corporate Counsel shall be the legal adviser and consultant of
the GSIS, and the GSIS may assign to it cases for legal action or trial, issues for
legal opinions, preparation and review of contracts/agreements and others, as
the GSIS may decide or determine from time to time. Provided, however, That
the present legal services group as well as Branch Attorneys shall serve as the
GSIS in-house legal counsel.

55.2. The GSIS may, subject to approval by the proper court, deputize any personnel
of the legal services group and its Branch Attorneys to act as special sheriff in
the enforcement of writs and processes issued by the court, quasi-judicial
agencies or administrative bodies in cases involving the GSIS.

Section 56 Powers of the Insurance Commission.- The Insurance Commissioner or

his authorized representatives shall make an examination of the financial condition and
methods of transacting business of the GSIS at least once every three (3) years to
coincide with the GSIS actuarial review and valuation. The report of said examination
shall be submitted to the Board of Trustees, with copies furnished the Office of the
President of the Philippines and the two Houses of Congress of the Philippines within
five (5) days after the close of the examination: Provided, further, That for each
examination, the GSIS shall pay the office of the Insurance Commissioner an amount
equal to the actual expenses incurred in conducting the examination, including the
salaries of the examiners and the actuary for the actual time spent.

RULE VIII

PENAL PROVISIONS

Section 57 Who may file a Criminal Action.- Criminal actions arising from violations
of RA 8291 and these Implementing Rules and Regulations, may be initiated by the
aggrieved member, either under the provisions of RA 8291 itself or, as appropriate,
under the Revised Penal Code.

Section 58 Penalties under Article 172 of the Revised Penal Code.- Any person
found to have participated directly or indirectly in the commission of fraud, collusion,
falsification, or misrepresentation in any transaction with the GSIS whether for him or for
some other persons, shall suffer the penalties provided for in Article 172 of the Revised
Penal Code.

Section 59 Other Penalties.- Persons who commit criminal acts in connection with
the operation of RA 8291 shall be subject to the following penalties.
59.1. Whoever shall obtain or receive any money or check invoking any provision of
this Act or any agreement there under, without being entitled thereto with the
intent to defraud any member, any government agency, the GSIS, or any third
party, shall be punished by a fine of not less than Five thousand pesos
(P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or by
imprisonment of not less than six (6) years and one (1) day to twelve (12) years,
or both, at the discretion of the court.
59.2. Whoever fails or refuses to comply with the provisions of RA 8291 or with the
rules and regulations adopted by the GSIS shall be punished by a fine of not less
than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos
(P20,000.00) or by imprisonment of not less than six (6) years and one (1) day to
twelve (12) years, or both, at the discretion of the court.

59.3. The Heads of Offices, Treasurer, Finance Officer, Cashier, Disbursing Officer,
Budget Officer or other official or employee who fails to include in the annual
budget the amount corresponding to the government agency and employee
contributions, or who fails or refuses or delays by more than thirty (30) days from
the time such amount becomes due and demandable, or to deduct the monthly
contributions of the employee shall, upon conviction by final judgment, suffer the
penalties of imprisonment from six (6) months and one (1) day to six (6) years,
and a fine of not less than Three thousand pesos (P3,000.00) but not more than
Six thousand pesos (P6,000.00), and in addition shall suffer absolute perpetual
disqualification from holding public office and from practicing any profession or
calling licensed by the government.

59.4. Any employee or member who receives or keeps fund or property belonging,
payable or deliverable to the GSIS and appropriates the same, or takes or
misappropriates or uses the same to any purpose other than that authorized by
this Act, or permits another person to take, misappropriate or use said fund or
property by expressly consenting thereto, or through abandonment or
negligence, or is otherwise guilty of the misappropriation of said fund or property,
in whole or in part, shall suffer the penalties provided in Article 217 of the
Revised Penal Code, and in addition shall suffer absolute perpetual
disqualification from holding public office and from practicing any profession or
calling licensed by the government.

59.5. Any employee, who after deducting the monthly contribution or loan amortization
from a member 's compensation, fails to remit the same to the GSIS within thirty
(30) days from the date they should have been remitted under Rule III of the IRR
shall be presumed to have misappropriated such contribution or loan
amortization and shall suffer the penalties provided in Article 315 of the Revised
Penal Code, and in addition shall suffer absolute perpetual disqualification from
holding public office and from practicing any profession or calling licensed by the
government.

59.6. The heads of the offices of the national government its political subdivisions,
branches, agencies and instrumentalities, including government-owned or
controlled corporations and government financial institutions, and the personnel
of such offices who are involved in the collection of premium contributions, loan
amortization and other accounts due the GSIS who shall fail, refuse or delay the
payment, turnover, remittance or delivery of such accounts to the GSIS within
thirty (30) days from the time that the same shall have been due and
demandable shall, upon conviction by final judgment, suffer the penalties of
imprisonment of not less than one (1) year nor more than five (5) years and a fine
of not less than Ten thousand pesos (P10,000.00) nor more than Twenty
thousand pesos (P20,000.00), and in addition shall suffer absolute perpetual
disqualification from holding public office and from practicing any profession or
calling licensed by the government.

59.7. The officers and/or personnel referred to above shall be liable not only criminally
but also civilly to the GSIS or to the employee or member concerned in the form
of damages, including surcharges and interests.

59.8. For the charges or complaints referred to above, the liabilities therein set forth
shall be construed as waiver of the State of its immunity from suit; hence, the
above-mentioned officials and/or personnel may not invoke the defense of non-
suability of the State.

59.9. Failure of the Members of the GSIS Board, including the Chairman and the Vice-
Chairman, to comply with the provisions on penalties referred to above shall
subject them to imprisonment of not less than six (6) months nor more than one
(1) year or a fine of not less than Five thousand pesos (P5,000.00) nor more than
Ten thousand pesos (P10,000.00) without prejudice to any civil or administrative
liability which may also arise therefrom.

RULE IX

GENERAL PROVISIONS

Section 60 Dispensation of Social Insurance Benefits.

60.1. The GSIS shall pay the retirement benefits to the employee on his last day of
service in the government: Provided, That all requirements are submitted to the
GSIS within a reasonable period prior to the effective date of the retirement;

60.2. The GSIS shall discontinue the processing and adjudication of retirement claims
under Republic Act 910 and R.A. No. 1616 except refund of retirement
premiums. Instead, all agencies concerned shall process and pay the gratuities
of their employees after securing the appropriate clearance from the GSIS to
clear any outstanding obligations to the System.

Section 61 Development and Disposition of Acquired Assets.

61.1. The GSIS shall have the right to develop and dispose of its acquired assets
obtained in the ordinary course of its business. To add value to, improve
profitability on, and/or enhance the marketability of an acquired asset, the GSIS
may further develop/renovate the same either with its own capital or through a
joint venture arrangement with private companies or individuals.
61.2. The GSIS may sell its acquired assets in accordance with existing Commission
on Audit (COA) rules and regulations for an amount not lower than the current
market value of the property. For this purpose, the GSIS shall conduct an annual
appraisal of its properties or acquired assets to determine its current market
value. All notices of sale shall be published in newspapers of general circulation.

61.3. No injunction or restraining order issued by any court, commission, tribunal or

office shall bar, impede or delay the sale and disposition by the GSIS of its
acquired assets except on questions of ownership and national or public interest.

Section 62 Government Assistance to the GSIS.- The GSIS may call upon any
government agency for such assistance as may be necessary in the discharge of its
duties and functions.

Section 63 Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges,

Functions and Activities. - Nothing in this IRR shall be construed to repeal, amend or
limit any provision of RA 8291 nor of any existing laws, Presidential Decrees and Letters
of Instructions, not otherwise specifically inconsistent with the provisions of RA 8291.

Section 64 Exclusiveness of Benefits. - Whenever other laws provide similar

benefits for the same contingencies covered by RA 8291, the member who qualifies to
the benefits shall have the option to choose which benefits will be paid to him.
However, if the benefits provided by the other law chosen are less than the benefits
provided under RA 8291, the GSIS shall pay only the difference.

Section 65 Appropriations.- The amount necessary to carry out the provisions of RA

8291 shall be included in the respective budgets of the covered agencies in the national
government obligation program starting CY 1998.
Section 66 Separability Clause.- Should any provision of RA 8291 or any part
thereof be declared invalid, the corresponding provisions in this IRR shall be
correspondingly stricken out, amended, or qualified as appropriate. The other
provisions, insofar as they are separable from the invalid ones, shall remain in force and
in effect.

Section 67 Repealing Clause.- All provisions of existing implementing rules and

regulations, circulars, and other procedures corresponding to laws and any other law or
parts of law specifically inconsistent with RA 8291 and with these IRR are hereby
repealed or modified accordingly. Provided, That the rights under existing laws, rules
and regulations vested upon or acquired by an employee who is already in the service
as of the effectivity of RA 8291 shall remain in force and in effect. Provide, further,
That subsequent to the effectivity of RA 8291, a new employee or an employee who has
previously retired or been separated and is re-employed in the service, shall be covered
by the provisions of these IRR.

Section 68 Effectivity of the Revised Implementing Rules and Regulations.-

These revised IRR shall take effect fifteen (15) days after its publication in the Official
Gazette or in at least two (2) newspapers of general circulation.